You are evaluating the performance of the laboratory department manager. The output of this department is the number of tests performed. A static budget was prepared at the beginning of the year. You are now examining that budget in relation to actual experience. The relevant data are included in the attachment. The department manager is pleased because the department has a favorable $50,000 cost variance.
Evaluate the effectiveness of the manager using the flexible budgetary variance model. Did the manager do a good job this year?
A flexible budget is a budget that adjusts for changes in cost driver activities. In this case the flexible budget is expressed as a fixed cost plus a ...
Solution Summary
This solution looks at a flexible budgetary variance model.
... company can not attain the budgeted goals. ... The training for the budgeting is also important ... advantages and disadvantages of the flexible budget and identifies ...
... Computation of Static Budget Variance- Flexible Budget Variance and ... Variance.Comments and analysis of Budget variances ... For July 2008 it budgeted to manufacture ...
Flexible budget is really a series of static budgets. A flexible budget is really a series of static budgets. Do you agree or disagree? Explain. Thanks. Hello. ...
... hours of direct manufacturing labor, at the budgeted rate of ... 7-17 Performance Report Actuals Costs Static Budget Variance Flexible budget actual costs ...
... Therefore, budgets is also regarded as a significant tools ...Flexible Budget Variance ... Income Budgeted Flexible Actual Flexible Statement amount per Budget Results ...
... It can be concluded that flexible budgeting and its reporting helps to determine whether ... 4. Build the flexible budget based on the budgeted cost information ...
...Flexible budget helps in budgeting at different volumes and ... the actual costs with the budgeted amount for ... these cost close to the flexible budget prepared in ...
... Capital Budgeting and Flexible Budgets. ... We will go straight to the flexible budget this time ... Actual Revenue = 25,000 x $85 = 2,125,000 Budgeted Revenue = 25,000 ...
